TREASURY the Government desires to borrow money for temporary purposes, it issues notes known as Treasury Bills. An issue is advertised in the London Gazette. A treasury bill is in a form prescribed by statute, payable at a specified date not more than twelve months from the date of the bill. The amount of the principal sum must be stated in the bills, and also the rate of interest payable thereon, but the amount received therefor by the Government depends upon the amount tendered by those who advance the money. As a matter of practice these bills are always issued at a discount.
between states in respect of their commercial relationships arc based upon the root idea of reciprocity. And this is so even in a case where no differential duties are imposed, and all nations are ostensibly treated with equal favour. " It is said that if a free trade nation arranges its tariff out of consideration to the revenue of another country, so far that nation is favoured relatively to others, and that this amounts to an infringement of free trade principles. To thi; it is replied that commercial treaties afford a middle way between protection and free trade, and that if other nations, by means of a treaty, are brought to see the advantages of a reduction of tariffs, they may ultimately follow the example of England, and repeal many of these duties altogether, and eventually adopt free trade." The extreme advocates of free trade go so far as to urge that there is really no use in such treaties ; that a nation should rely simply upon free imports to fight foreign tariffs, and that the exports can be left to take care of themselves. Commercial treaties would seem to have been of very early origin, though their scope was originally confined to securing the safety of traders in foreign countries, subject to payment of tolls or duties. In their modern character they are a development of the MERCANTILE SYSTEM, their object being mainly the attainment of advantages supposed to follow from that system.
Political treaties, and especially " treaties of peace," are usually made perpetual, or " for all time." Commercial treaties are only exceptionally made perpetual. They are usually made for a specified term of years or for an indefinite period, or until some specified period after notice. It is a disputed question as to whether a war between the parties to a treaty will operate so as to dissolve it. The dissolution of a treaty by the act of the parties thereto is termed a " denunciation." It may be that a commercial arrangement is made part of the terms of a treaty of peace, whereby it follows that the commercial arrangement is itself perpetual and cannot be denounced. Such was the case in the treaty of Frankfort of 1871, between France and Germany, the eleventh article of which has forced these two countries to grant to each other all favours they give to any of the six nations mentioned [see MOST FAVOURED NATION]. The article runs as follows :— Since the treaties of comrnerce with the various States of Germany have been annulled through the war, the German and the French administrations will place as the basis of their commercial relations the principle of' mutual treatment on the footing of the most favoured nation. This rule embraces the import and export payments, the transit trade, the customs regulations, the admittance and treatment of the subjects of both nations and the representatives of the same. Nevertheless, excepted from the above given rule are the concessions which one of the contracting parties has granted or will grant, through commercial treaties, to other countries than the following :—England, Belgium, Netherlands, Switzer land, Austria, Russia.
Commercial treaties, as to their subject-matter, may provide for trade merely, as, for instance, for the importation and exportation and transit of particular merchandise, for the port dues, and transit dues, and customs dues, to be levied thereupon ; or for the incidents of trade in connection with the residence of traders ; as, for instance, the exercise of jurisdiction, the practice of religion, the payment of personal taxes. And they may even extend further, and may apply to the contingencies of war breaking out between the contracting parties and a third power, or between powers which are strangers to the contracting parties. Of modern treaties with which Great Britain has been concerned the most interesting and instructive, as an illustration, is that one negotiated with France by Richard Cobden in 1860. Though influenced largely by political considerations, yet in this treaty the notion of the reciprocal advantages rather than the balance of losses by mutual con cessions first found due prominence. Great Britain entered into this treaty in furtherance of a policy of free trade, and thereby firmly established a principle which she has never since altogether forsaken. Though reciprocity was the " notion " of it, yet, in fact, Great Britain surrendered nothing and granted no real concessions, when, in pursuance of her already settled policy, she per mitted the free exportation of coal, reduced the wine and brandy duties, and abolished protection to manufactures. France was required to reduce her prohibitory duties to a moderately protective rate, and a most favoured nation clause was introduced on the part of each nation. Of course this treaty has since gone the ultimate .way of all international commercial arrangements, but its principles have left a deep impress on the policies of both countries. Such general treaties are now replaced in France by tariff legislation, on the basis of the maximum and minimum system pet TARIFF], and incidental treaties, with the most favoured nation clause, concluded with certain other countries determining their place in that system.
Four classes of modern commercial treaties may be distinguished. 1. General Treaties. Usually made with countries only partially open to European commerce, containing in detail all the terms and conditions of the arrangement, but never a most favoured nation clause or any tariff agree ment. M. Most Favoured Nation Treaties. Containing only a clause assuring the most favoured nation treatment, and, perhaps, some general regulations relating to commerce. Such treaties are sufficient, as a rule, to assure that the parties thereto have the full benefit of any desired tariff advantages. 3. Tariff Conventions. Treaties of this class are usually pre ferred by countries such as the United States, which do not admit the principle of unconditioned most favoured nation treatment, for the clause assuring that is omitted. But the very precise tariff agreement they necessarily contain answers even a higher purpose than does the clause, for it is supposed to show that the contracting powers are in a high state of comity to conclude a treaty in respect only of express tariff details. 4. Tariff Treaties. These contain regulations concerning tariffs, and also the most favoured nation clause. The tariff regulations, however, are the more important part, for they enter precisely into the details of commercial trans actions, and definitely fix or " bind " the rates of duties arranged to be imposed.